Degree of operating leverage 2a proposed project has fixed


At an output level of 59,000 units, you calculate that the degree of operating leverage is 3.30. Suppose fixed costs are $160,000. What is the operating cash flow at 53,000 units?

(Do not round intermediate calculations and round your final answer to the nearest whole number, e.g., 32.)

Operating cash flow $

What is the new degree of operating leverage?

(Do not round intermediate calculations and round your final answer to 3 decimal places, e.g., 32.161.)

Degree of operating leverage 2.A proposed project has fixed costs of $94,000 per year.

The operating cash flow at 6,400 units is $88,800. Ignoring the effect of taxes, what is the degree of operating leverage?

(Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

Degree of operating leverage If units sold rise from 6,400 to 6,900, what will be the new operating cash flow?

(Do not round intermediate calculations.

Round your answer to 2 decimal places, e.g., 32.16.) Operating cash flow $

What is the new degree of operating leverage?

(Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

New DOL 3.At an output level of 12,200 units, you have calculated that the degree of operating leverage is 3.20. The operating cash flow is $67,100 in this case. Ignoring the effect of taxes, what are fixed costs?

(Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

Fixed costs $ What will the operating cash flow be if output rises to 13,200 units?

(Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Operating cash flow $ What will the operating cash flow be if output falls to 11,200 units?

(Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Operating cash flow $

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Financial Management: Degree of operating leverage 2a proposed project has fixed
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